Money Laundering Detected at Crown Resorts May Be ‘Tip of the Iceberg,’ Inquiry Hears
The Victoria probe, known as a royal commission, was
triggered by damning findings in New South Wales by former state supreme court
judge Patricia Bergin. These included that Crown had facilitated money
laundering for criminal gangs and built relationships with junkets linked to
organized crime.
The Bergin Inquiry specifically focused on two VIP accounts
controlled by Crown that could be used by criminals to launder bundles of
banknotes.
Infractions in February
But the Victoria inquiry heard that an ongoing audit by
Deloitte has identified 14 more accounts suspected of money laundering. The
inquiry claimed the accounts were not examined by Bergin, with some
transactions taking place just three months ago.
This raises the possibility that infractions were still
happening as recently as February. That at a time when the Bergin Inquiry was
in full swing. That investigation resulted in the loss of Crown’s Sydney
license. The company hopes this will be temporary, as it implements anti-money
laundering (AML) reforms and improves its corporate governance, as recommended
by Bergin.
But in Victoria, the license for its flagship Melbourne
property is on the line. Just over a week into hearings, things haven’t been
going well for Crown.
On Monday, the inquiry also heard that Crown only ordered
the Deloitte audit in February, a full seven years after it was first accused
in the media of facilitating money laundering.
The late start to the audit means its findings won’t be
ready by August 1. That is the date Victoria inquiry chairman, former judge Ray
Finkelstein must report whether he deems Crown suitable for licensing in
Melbourne.
‘Knee-Jerk Reforms’
Meanwhile, according to Counsel Assisting the Inquiry Meg
O’Sullivan, independent experts have criticized Crown’s efforts to win back its
Sydney license, calling the reforms to its AML program “knee-jerk.”
There are serious concerns about Crown’s ability to
implement consistent, effective, and sustainable reforms to address its past
money laundering,” O’Sullivan said. “Over the coming days, we will look into
the past, present and future to consider just how effective Crown’s reform
program is.”
Last week, the company’s head of financial crime, Nick
Stokes, told the royal commission that when he joined the company in 2019, its
AML operations were woefully under-resourced, consisting of just two staff
members at its Melbourne property and two more in Perth.
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